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This is a very interesting time for Real Estate

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posted on May, 30 2023 @ 02:10 PM
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I wrote a few weeks ago about how my area didn’t have a single house for sale.

Well that changed. Two have been listed. One for an unbelievable amount and is under contract.
The other house is still available and what they are asking makes me shake my head. This house was purchased 2 years ago and now they are asking hundreds of thousands of dollars over the price they paid. (Notice I didn’t say 100K, but 100’s!)
What did they upgrade, appliances, and when I say they are the cheapest apartment looking appliances I’m not exaggerating!
That’s it….. Although there aren’t really any other houses it appears buyers DO have their limits, and it does appear that sellers are testing those limits!

It also got me thinking about realtors. What are they doing in this economy? I looked it up and oddly the amount of realtors is GROWING while the amount of houses for sale is shrinking. Not sure how that is going to work. I guess during Covid a lot of people thought they would get rich quick by being a realtor. I know a few of those people. One still doesn’t have a single sale under her belt.

Are we all just going to be stuck in gridlock due to the low rate the majority locked in?
How dumb would it be to sell a house with a low rate to just buy half the house for a higher cost? That is exactly what people are facing right now.

Having high rates, and high costs is just not sustainable.

I have noticed another trend, multi generational housing. People used to look down on kids in the basement, but now everyone seems to be moving back home. Elderly are moving in with their adult kids, young adults are moving back in with parents. I had both happen in my life.

Not sure what will be the catalyst for the next change in real estate, but have a sinking feeling it won’t be good. I don’t think it will be lower prices or a crash either.



posted on May, 30 2023 @ 02:19 PM
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a reply to: JAGStorm

I think this is true everywhere.

The average house in my area fell in the $100,000 to $300,000 range 20 years ago.

Today the average house is in the $700,000 to 2 million dollar range.

Of course they come with 5+ acres.



posted on May, 30 2023 @ 02:23 PM
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The prices are reflecting the current inflation and supply and demand. People are still buying homes they can get their hands on before they can’t.

The people who can’t buy a house still can’t.

The people who can, will.



posted on May, 30 2023 @ 02:25 PM
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originally posted by: NightSkyeB4Dawn
a reply to: JAGStorm

I think this is true everywhere.

The average house in my area fell in the $100,000 to $300,000 range 20 years ago.

Today the average house is in the $700,000 to 2 million dollar range.

Of course they come with 5+ acres.



This is exactly what I’m referring to. The scary part is that salaries here don’t allow for that kind of mortgage. I am a numbers cruncher and when we bought our house about 7 years ago I looked into all the statistics on salaries, house prices etc. Very few people here (at that time, but probably now too) could actually afford a house over 450.
I’m sure some since then have used funds from selling of their old house to catapult them into a new house bracket, but now are they “stuck”?
We are getting into interesting territory though.



posted on May, 30 2023 @ 02:27 PM
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originally posted by: 38181
The prices are reflecting the current inflation and supply and demand. People are still buying homes they can get their hands on before they can’t.

The people who can’t buy a house still can’t.

The people who can, will.


Can they though? Some of this is not making sense to me.
Is there something new with mortgages I’m unaware of? I did hear something about 40 year mortgages or something.

nationalmortgageprofessional.com...#:~:text=Of%20the%20132.5%20million%20households,housing%20af fordability%20pyramid%22%20for%202023.




Of the 132.5 million households nationwide, nearly 49% are unable to afford a house priced at $250,000. That’s according to the National Association of Home Builders (NAHB), which recently updated its "housing affordability pyramid" for 2023.


There is nothing near me anywhere close to the 250 range. So if 49% of households can’t afford 250, how many can’t afford 500, 1mil, and more?

edit on 30-5-2023 by JAGStorm because: (no reason given)



posted on May, 30 2023 @ 03:14 PM
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originally posted by: JAGStorm

There is nothing near me anywhere close to the 250 range. So if 49% of households can’t afford 250, how many can’t afford 500, 1mil, and more?


Is a house a privilege or right to have? One big problem in America is we do not see the synergy of the family and everyone wants to own/live on a single paycheck. You go to other countries and there are generations under one roof, but for us, we all want single living as a living wage, and that just isn't how the world works.

500k house 6% 30 years is about 3000 per month. How much is your rent? How about 3 people playing 3000, so 1000 each and 1/3 of the utilities etc. is that doable for most?
edit on 30-5-2023 by Xtrozero because: (no reason given)



posted on May, 30 2023 @ 04:27 PM
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Market is frozen and there is a lack of inventory. Basically, the high rates are making current homeowners decide to just stay put. Why sell when you have a 3% interest rate only to trade it for a 7% rate and a substantially larger mortgage?

The lack of inventory is keeping prices inflated for the few properties that are on the market.

It is definitely a weird time. I've been in mortgage biz 20 years. We went from historic record originations to lowest volume in like 30 years. Many Realtors, Loan Officers, Title Agents are dying right now from lack of business.



posted on May, 30 2023 @ 05:56 PM
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a reply to: Xtrozero




Is a house a privilege or right to have? One big problem in America is we do not see the synergy of the family and everyone wants to own/live on a single paycheck. You go to other countries and there are generations under one roof, but for us, we all want single living as a living wage, and that just isn't how the world works. 500k house 6% 30 years is about 3000 per month. How much is your rent? How about 3 people playing 3000, so 1000 each and 1/3 of the utilities etc. is that doable for most?


That is the million dollar question isn’t it, especially in America, The American Dream…..

I also think people are absolutely unrealistic with their housing costs, very house poor society/mentality.



posted on May, 30 2023 @ 09:23 PM
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a reply to: JAGStorm

Of course they were.
I went to public school, they didn't teach how money worked or how to even be relevant in society, you had to seek out real classes if you wanted to learn how to balance a checkbook... but clearly that education lacked basic finance, like don't spend more than you have.

USD had failed, it was dead by the time the dot com bubble burst, government criminals just weren't done leveraging it's prestige to make themselves rich yet.
Now we're reaching the point where everyone knows its over, and the lifelong scum are selling out faster and harder than ever before to get their cut before the next guy does.


As far as real estate goes, anyone who can buy will buy because they know that soon nobody will be able to buy and everyone will be #ed for at least ten years, assuming the country survives what's coming



posted on May, 30 2023 @ 09:48 PM
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a reply to: Edumakated

Obviously real estate is a very localized market.
If I recall correctly you are situated around the Chicago area?

In my kneck of the woods (swfl area) the prices appear to be hanging on at record levels eventhough inventoryhas gone up a bit. However it appears that most buyers down here are cash buyers I believe it was as high as 80% of them, so interest rates doesn't effect most of the buyers.

We just had 2 new properties listed in my neighborhood and I'm waiting to see how fast they sell. The last property listed a month ago sold on the same day with multiple over asking prices.

But yeah in general the market is all over the place and a ticking time bomb imo.

Besides the prices and interest rates going up so have insurance and taxes.



posted on May, 31 2023 @ 06:48 AM
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a reply to: Xtrozero

When I was in Italy, I noticed the lack of huge cookie cutter neighborhoods. All I saw was small towns with multiplexes. With big swaths of land between each little town. And the rail system is phenomenal. Huge differences in scenery. The USA is becoming over built with single family homes all over creation. And they are getting worse in quality.

Cash buyers don’t have to eat PMI and loan Interest.

Sell mom and dads home they bought in the 40’s-60’s for peanuts in California and take that 900k or more a buy a nice house with acreage out right in Tennessee with the left overs going into savings.

edit on 31-5-2023 by 38181 because: (no reason given)

edit on 31-5-2023 by 38181 because: (no reason given)



posted on May, 31 2023 @ 11:26 AM
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originally posted by: 38181
a reply to: Xtrozero

When I was in Italy, I noticed the lack of huge cookie cutter neighborhoods. All I saw was small towns with multiplexes. With big swaths of land between each little town. And the rail system is phenomenal. Huge differences in scenery. The USA is becoming over built with single family homes all over creation. And they are getting worse in quality.

Cash buyers don’t have to eat PMI and loan Interest.

Sell mom and dads home they bought in the 40’s-60’s for peanuts in California and take that 900k or more a buy a nice house with acreage out right in Tennessee with the left overs going into savings.


I have lived in Europe in a multiplex (Germany) and I have lived in the US in a very cookie cutter neighborhood.
I’d take cookie cutter 100000000000x over a European multiplex with good transportation any day of the week.

I think the American spirit is very different.



posted on May, 31 2023 @ 12:39 PM
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a reply to: JAGStorm

What area of the country do you live in?



posted on May, 31 2023 @ 12:41 PM
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originally posted by: interupt42
a reply to: Edumakated

Obviously real estate is a very localized market.
If I recall correctly you are situated around the Chicago area?

In my kneck of the woods (swfl area) the prices appear to be hanging on at record levels eventhough inventoryhas gone up a bit. However it appears that most buyers down here are cash buyers I believe it was as high as 80% of them, so interest rates doesn't effect most of the buyers.

We just had 2 new properties listed in my neighborhood and I'm waiting to see how fast they sell. The last property listed a month ago sold on the same day with multiple over asking prices.

But yeah in general the market is all over the place and a ticking time bomb imo.

Besides the prices and interest rates going up so have insurance and taxes.



Yeah, real estate is definitely local. Chicago market is pretty much a dog compared to most cities. You are lucky to keep up with inflation in terms of real estate value. I've been in my house almost 20 years and there is no way I could sell it for the inflation adjusted value of what we paid back in the day.

On the other hand, there are markets where homes have almost doubled in value in 3 years.

In general, I don't think these high prices and rates are sustainable. The average person simply can't afford it or it is going to cause less spending in other areas of the economy since budgets are stretched to cover housing.



posted on May, 31 2023 @ 01:02 PM
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originally posted by: JAGStorm

originally posted by: 38181
a reply to: Xtrozero

When I was in Italy, I noticed the lack of huge cookie cutter neighborhoods. All I saw was small towns with multiplexes. With big swaths of land between each little town. And the rail system is phenomenal. Huge differences in scenery. The USA is becoming over built with single family homes all over creation. And they are getting worse in quality.

Cash buyers don’t have to eat PMI and loan Interest.

Sell mom and dads home they bought in the 40’s-60’s for peanuts in California and take that 900k or more a buy a nice house with acreage out right in Tennessee with the left overs going into savings.


I have lived in Europe in a multiplex (Germany) and I have lived in the US in a very cookie cutter neighborhood.
I’d take cookie cutter 100000000000x over a European multiplex with good transportation any day of the week.

I think the American spirit is very different.


Definitely, I was just pointing out the scenery difference.

I’ll take my mini ranch with no neighbors anyday.



posted on May, 31 2023 @ 01:11 PM
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a reply to: Edumakated




I've been in my house almost 20 years and there is no way I could sell it for the inflation adjusted value of what we paid back in the day.

If recall despite Florida prices being an all time high I thought Chicago had some pretty high prices as well? So you might be able to sell in Chicago and head on down to Fl?

I know you mentioned you did Mortgages, are you mostly servicing a local market or do you provide service at a national level to alleviate from the local slowdown?


From one of the notifications I get in regards to the market.









The average person simply can't afford it or it is going to cause less spending in other areas of the economy since budgets are stretched to cover housing


Yep eventually something is going to have to give.

I feel bad for those starting their work life as a young adults and trying to get into the real estate game during this time. However, the market has been pretty consistent in one thing and that is the market goes on cycles. Its only a matter of time before the buyers get the upper hand again.

Although, the mega corporations getting into the rental game might prolong the cycle for longer than normal cycles (10-15 yrs) unless the WEF gets its wish of "You will own nothing, and you will be happy"

edit on 21531America/ChicagoWed, 31 May 2023 13:21:39 -0500000000p3142 by interupt42 because: (no reason given)



posted on May, 31 2023 @ 06:18 PM
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originally posted by: JAGStorm

I have lived in Europe in a multiplex (Germany) and I have lived in the US in a very cookie cutter neighborhood.
I’d take cookie cutter 100000000000x over a European multiplex with good transportation any day of the week.

I think the American spirit is very different.


Housing typically sucks in other countries on levels we take for granted. I have lived in France, Germany, Japan and Korea, and in all these places my house seems to always lack at least one or two things we have in the states as a norm. So I'm with you when people say living standards are better in X country, and I'm like...maybe not...



posted on May, 31 2023 @ 07:51 PM
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Up here in northeast Wisconsin, I paid $247,000 for my house in 2014. It just assessed for $500,000.

Everything seems to have doubled in price in the past 10 years. Have salaries doubled? I don't think so.



posted on May, 31 2023 @ 08:26 PM
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a reply to: JAGStorm

With 7% @ 30 year interest rates, something has to break.



posted on May, 31 2023 @ 08:28 PM
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a reply to: Edumakated



In general, I don't think these high prices and rates are sustainable. The average person simply can't afford it or it is going to cause less spending in other areas of the economy since budgets are stretched to cover housing.


Worse yet, people taking on more than they can afford or a shrinking economy....or both.

Its like we never learned from 2008.




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